Payment Service Providers (PSPs) face a unique set of challenges in today's rapidly evolving payments landscape. These challenges range from cost and scalability issues to the need for modernization and flexibility. In this article, we take a closer look at some of these common pain points and why Software Point of Sale (SoftPOS) is the ideal solution.
Reducing Costs, Growing the Business
A common challenge faced by the CEO at a PSP is reducing operating costs associated with expensive traditional Point-of-Sale (POS) terminals, improving efficiency by simplifying deployment and maintainability of these systems. According to Edgar, Dunn & Company, maintaining traditional POS systems might cost some businesses $3,000 a year, while others will have to pay more than $10,000 depending on the size of the business. One UK retailer that EDC worked with a few years ago was spending $200m annually on POS-related maintenance. Aside from the cost, the CEO faces the challenge of scaling their operations or expanding into new markets where traditional POS systems may not be available or viable.
Keeping Up with Consumer Expectations
A study from Juniper Research predicts that the contactless payment volume will more than double from 195 billion in 2022 to 408 billion by 2027, driving a consumer expectation of contactless availability everywhere, including from the smallest merchants. The Chief Technology Officer (CTO) must also ensure that the company's products and services are competitive in the market and align with the evolving needs of customers. Many legacy POS systems lack the ability to integrate with modern payment methods, such as mobile wallets or contactless payments, limiting PSPs' ability to meet their customers' demands.
Flexibility and Portability
PSPs often serve merchants in diverse settings, including pop-up shops, markets, or events, where traditional POS terminals might not be practical or feasible. The Chief Product Officer (CPO) is challenged to improve the customer experience by simplifying and enhancing convenience of payment methods, and developing innovative products and features that differentiate their business from competition. A flexible and portable payment solution that can adapt to these environments is crucial for PSPs to offer their merchant network a seamless customer experience.
Enter SoftPOS: The Ideal Solution
SoftPOS offers PSPs a cost-effective, scalable, and future-proof alternative to traditional POS systems. By turning smartphones or tablets into payment terminals, SoftPOS eliminates the need for expensive hardware, reducing upfront and ongoing costs. It also enables PSPs to quickly adapt to changing market conditions and expand their operations without significant capital investments.
SoftPOS provides PSPs with a highly compatible payment platform that offers flexibility in accepting a wide range of payment methods, including contactless and mobile payments, ensuring that PSPs can offer innovative payment options and meet their customers' evolving needs to stay ahead of the curve. For example, some taxi companies are beginning to explore the use of SoftPOS as an alternative to traditional cash transactions, aiming to improve efficiency and convenience. SoftPOS offers the ability to address some of the pain points associated with traditional cash transactions in the taxi industry, such as the need for change or the risk of receiving counterfeit currency. This capability has made SoftPOS a popular choice among both passengers and taxi drivers, offering a more convenient and secure payment option.
Additionally, SoftPOS‘s portability makes it ideal for merchants operating in non-traditional settings. Whether it's a food truck, a weekend farmers' market stall, or a pop-up store, SoftPOS allows PSPs tomaintaina consistent service level across all their merchants. Overall, as an emerging payment method, the application of SoftPOS varies in different industries and regions. With the continuous development of technology and market changes, new application scenarios and advantages of SoftPOS will emerge.
Upgrading software for a store can be pricey, with costs ranging from $500 to $1500 per POS device, as reported by Edgar, Dunn & Company. Imagine a store with 5,000 devices spread across 100 locations – the financial impact of implementing an upgrade is greatly significant. SoftPOS excels in the ease and speed for PSPs implementing updates. Unlike traditional POS devices that require costly and time-consuming hardware upgrades, SoftPOS enables effortless and remote software updates. This not only saves PSPs time and money but ensures their payment systems are always up to date with the latest security patches and features.
SoftPOS APIs also offer vast possibilities, both technologically and creatively. PSPs can integrate SoftPOS into their existing systems for a smoothly payment experience, enabling support for new payment methods, custom reports, and third-party value-added services integration. Furthermore, SoftPOS conveniently supports QR codes and other scannable codes, crucial in today's digital payment landscape.
In conclusion, PSPs face multiple pain points in today's payments ecosystem, ranging from cost and scalability issues to the need for modernization and flexibility. SoftPOS emerges as the ideal solution to address these challenges, offering a cost-effective, scalable, and future-proof alternative to traditional POS systems. By embracing SoftPOS, PSPs can ensure they remain competitive in today's rapidly evolving payments landscape.
If you want to learn more about what the need of SoftPOS is and how to have your own SoftPOS, we can help you. Get in touch with us at contact@theminesec.com.
